According to Zillow, the average home value in Annandale is $687,377, which has only increased by 0.6% over the past year. Compared to a few years ago when the area saw double-digit growth, this trend has noticeably slowed down. I will follow the situation of a family looking to buy their first home in this area to highlight the calculations they need to make.

Starting with a budget of $650,000, this family first decided on the type of loan. An FHA loan requires a minimum credit score of 580 for a 3.5% down payment, while a score between 500 and 579 requires 10%. A conventional loan can start at 3% if the buyer is a first-time homebuyer or has an income below 80% of the area median, but this family opted for a 20% down payment of $130,000 to avoid PMI.

Next, they checked the property tax. The property tax rate for Fairfax County, where Annandale is located, is $1.1225 per $100 of assessed value for the 2026 fiscal year. For a $650,000 home, the annual property tax would exceed $7,000, and it's worth noting that unlike Texas, which has no income tax, Virginia has both income and property taxes.

This family was unable to prepare the full down payment, so they looked into the down payment assistance grant from the Virginia Housing. This grant provides 2% to 2.5% of the purchase price and is a true grant with no repayment obligation. However, the buyer must contribute at least 1% from their own funds or gifts, and it must be used in conjunction with Virginia Housing loan products.

If their income is below 60% of the area median, they might also consider the pilot down payment assistance program from the Virginia Department of Housing and Community Development (DHCD). This program offers up to $50,000 in assistance, but the income criteria are relatively strict, so it's advisable to check eligibility with a loan officer during the pre-approval stage.

Pre-approval is the process of confirming the actual loan limit based on income, debt, and credit score. This family reported that they were seriously considered in the offer competition only after receiving their pre-approval documents. Closing costs also require separate preparation, typically ranging from 2% to 5% of the loan amount.

After their offer was accepted, they still needed to complete the appraisal, home inspection, and interest rate lock procedures. In areas like Annandale, where properties sell quickly, it's common for the appraised value to fall short of the contract price, so this family decided to cover part of the difference in cash and proceeded with the contract.

If they were looking at condos or townhomes, they would also need to factor in HOA fees as a fixed monthly cost. This family chose a single-family home and decided to account for their own maintenance costs instead of HOA fees.

Since interest rates and fee conditions vary by lender, this family obtained quotes from two or three places to compare before selecting their final lender. Even with the same credit score, the interest rates offered by different banks can vary slightly, so this comparison helped reduce their total interest burden over a 30-year term.

For this family, it took about a month and a half from offer acceptance to closing. During that time, the appraisal, home inspection, and loan document review were conducted sequentially, and they scheduled their moving date accordingly. In an area like Annandale, where both rentals and sales are active, planning this schedule considering the end of their existing rental contract was actually helpful.

While it's good to refer to GreatSchools ratings for school districts, keep in mind that boundaries change frequently, so it's advisable to verify the assigned school before purchasing. Tax and loan conditions can vary by county. This is not investment or legal advice, and consulting a professional before finalizing any contracts is recommended.